Homeowners who refinanced their mortgages in the first quarter of 2013 will save…
June 07, 2013
The highly anticipated jobs report was released showing that employers added 175,000 new jobs in May, above the 159,000 expected signaling that the labor markets are improving, but not at a pace where the Federal Reserve will pull back on its current stimulus program. The Unemployment Rate rose to 7.6% from 7.5% and it was reported that 420,000 people entered the work force. The Bureau of Labor Statistics said that employment rose in professional and business services, food services and drinking places and retail trade.
The Great Recession took a toll on the pockets of Americans across the nation as the middle class saw their personal wealth fall by almost 50% to nearly a 40-year low. In the recent data, households have gained back 62% of what disappeared according to the figures compiled through the first quarter of this year.
Freddie Mac reported yesterday that homeowners who refinanced their mortgages in the first quarter of 2013 will save nearly $7 billion in interest payments in the next 12 months. The categories are broken down as 28% shortened their loan terms, 68% of borrowers kept the same term as the loan that they paid off, 3% chose to lengthen their term loan while more than 95% of refinancing borrowers chose a fixed-rate loan.